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This is known as the "law of increasing opportunity costs."
The economic rational for the law of increasing opportunity costs is that economic
resources are not completely adaptable to alternative uses. The opportunity cost of
producing a product tends to increase as more of it is produced because resources less
suitable to its production must be employed. Prices are a measure of opportunity cost
because they provide information about the value of one product in relation to another.
The shape of the Productions Possibility Frontier, (PPF), illustrates the principle of increasing opportunity costs (Graph 3)...
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